Any business that deals with commodities must have a solid supply chain management system in place to be successful. SCM is crucial to the upkeep and budget optimization of businesses and organizations that manufacture items or provide services. Logistics are crucial to maintaining a solid supply chain, much as supply chain systems are for the upkeep of a business. By taking care of the planning, carrying out, and controlling of the flow and storage of goods and services, it ensures that the demands and requirements of the client are met. So it wouldn't be incorrect to say that any business endeavor needs logistics and supply chain training to succeed.
Every successful business recognizes the importance of well-organized logistics for the growth of their sales. Supply chain risks and issues can be overcome with effective logistics management. For instance, the demand for effective logistics management arises as freight volume increases and transportation becomes more challenging.
Difference Between Logistics and Supply Chain
Although both are the same parts of a system, logistics and supply chain have differences of their own. Logistics is a simple and narrowly focused concept that deals primarily with the globalization of resource management.
Supply chain, on the other hand, is a much more complex term. It does not just deal with logistics but also works towards ensuring end-to-end optimization within the enterprise and with other counterparties as well. Therefore, implementing logistics management means looking after the entire network structure of supply chain systems. The main outcome of logistics management is to achieve maximum competitiveness, increased productivity, and enhanced profit.
8 Key Aspects of Logistics
It is clear that logistics training is essential for the effective management of a company’s operations. Logistics and Supply Chain Management courses familiarize professionals with some of the key aspects of logistics. These are:
➤ Production Logistics
Production logistics is all about controlling and streamlining the supply chain operations from start to end. This process looks into organizational concepts, layout planning, production planning, and control.
➤ Distribution Logistics
Distribution logistics looks after the delivery of the finished products to the customers. The important steps involved in this are order processing, warehousing, and transportation. Transportation can be carried by different means, such as air, rail, water, and truck transportation. Distribution logistics looks into other sub-factors as well. These are warehousing and storage, motor vehicle repair, and many more.
➤ Disposal Logistics
Disposal logistics, or reverse logistics, is a term used for operations that look into the reuse of products and materials. This process is primarily concerned with reducing logistics costs, enhancing service, and saving natural resources.
➤ Maintain a Competitive Edge
Successful logistics management is important to ensure customer satisfaction to maintain a competitive advantage over competitors in the market.
➤ Customer Retention
Well-executed logistics management helps in strengthening relations with the customer. It promotes customer satisfaction and ultimately customer retention. Customer relation also helps in augmenting immediate monetary gain, contributing directly to long-term business growth.
➤ Finished Product
Logistics management has a direct hand to play in bringing in new raw materials for the manufacturing process. Storage of enough products ensures that there is enough supply available when unexpected demands or situations arise.
➤ Good Visibility
Logistics management helps in creating good visibility for the organization's supply chain. It helps in documenting and analyzing historical data and keeps track of the real-time movement of goods into and out of a business.
The Main Functions of Logistics Within Supply Chain Systems
➤ The first function of logistics is to look after the warehouse design and management. Within this, logistics ensure the effective functioning of various other tasks. These include the design of storage facilities to match the requirements for the storage of products, implementing various automation solutions, and many more.
➤ The second role of logistics is to manage the formation of packages. The other sub-tasks involved in this are packaging, tracking, accounting, and controlling goods and services in accordance with the needs and demands of the customer.
➤ The main part of successful Supply Chain Management is the transportation of products. Therefore, logistics plays a vital role in providing cargo carriers and vehicles with faster transportation. Logistics management also looks after the planning of the best routes, calculating and managing fuel costs, and many more.
➤ While dealing with international deliveries, it becomes essential to deal with customs. Logistics ensures that all the regulations and requirements of the customs are met.
➤ Logistics also comes into play while working with intermediaries. Intermediaries include third-party, non-company resources that have a direct role in the implementation of supply chains. The main step involved in this is providing intermediaries with the best ratio of quality to cost of services to maintain a strong, long-term, and reliable relationship with them.
➤ “Reverse logistics” is the term used when professionals in the field come up with the best rules and routes to transport and dispose of returned or discarded goods.
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